Home -> Law Blog Directory -> Bailout Blogs -> Calculated Risk

Bailout

: Calculated Risk

Inflation in China

By Anonymous

On inflation in China ...
? From Keith Bradsher at the NY Times: Inflation in China May Limit U.S. Trade Deficit

Inflation is starting to slow China?s mighty export machine, as buyers from Western multinational companies balk at higher prices and have cut back their planned spring shipments across the Pacific.

? And from Paul Krugman: A Cross of Rubber

While recovery in advanced nations has been sluggish, developing countries ? China in particular ? have come roaring back from the 2008 slump. This has created inflation pressures within many of these countries; it has also led to sharply rising global demand for raw materials.

... inflation in China is China?s problem, not ours. It?s true that right now China?s currency is pegged to the dollar. But that?s China?s choice; if China doesn?t like U.S. monetary policy, it?s free to let its currency rise. Neither China nor anyone else has the right to demand that America strangle its nascent economic recovery just because Chinese exporters want to keep the renminbi undervalued.

Egypt and U.S. Futures: Here is the Al Jazeera live Egypt blog for January 31st. The Asian markets are mostly off about 1% to 1.5% tonight.

CNBC's Pre-Market Data shows the S&P 500 and Dow futures flat. Not much of a reaction.

Earlier on U.S. economy:
? Summary for Week ending January 29th
? Schedule for Week of January 30th
? BLS Employment Revisions on Feb 4th

Full post as published by Calculated Risk on January 31, 2011 (boomark / email).